Pearson plc (PSO) P/E Ratio History
Fairly ValuedTrading at 17.8x, near 5Y avg of 16.5x · 75th percentile · In line with own history · Data 1996–2025
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P/E Ratio Analysis
As of June 22, 2026, Pearson plc (PSO) trades at a price-to-earnings ratio of 17.8x, with a stock price of $14.88 and trailing twelve-month earnings per share of $1.18.
The current P/E is roughly in line with its 5-year average of 16.5x. Over the past five years, PSO's P/E has ranged from a low of 6.9x to a high of 38.1x, placing the current valuation at the 75th percentile of its historical range.
Compared to the Communication Services sector median P/E of 15.3x, PSO trades at a 16% premium to its sector peers. The sector includes 110 companies with P/E ratios ranging from 0.1x to 161.8x.
The PEG ratio of 1.35 (P/E divided by 19% EPS growth) suggests a fair valuation relative to its earnings growth. Peter Lynch popularized the rule that a PEG below 1.0 indicates an attractive entry point.
Relative to the broader market, PSO trades at a notable discount to the S&P 500 median P/E of 24.4x. Investors should consider the company's growth prospects, competitive position, and earnings quality when evaluating whether the current valuation is justified.
For a comprehensive intrinsic value estimate using discounted cash flow analysis, see our PSO DCF Valuation Calculator →
Note: P/E ratio is just one valuation metric. It does not account for balance sheet strength, cash flow quality, or growth sustainability. Always conduct comprehensive due diligence before making investment decisions.
PSO Cross-Benchmark Valuation
How does the current P/E compare to sector peers and the broader market?
PSO P/E vs Peers
Education and academic publishers peers sorted by market cap
| Company | Market Cap | P/E Ratio | PEG Ratio | EPS Growth (1Y) |
|---|---|---|---|---|
| $2B | 13.9 | 1.85 | +16% | |
| $2B | 13.2Lowest | 1.94 | +11% | |
| $4B | 18.4 | 2.56 | -0% | |
| $677M | 180.2 | - | +105%Best | |
| $5B | 19.3 | - | -2% | |
| $2B | 35.7 | 0.42Best | +51% | |
| $4.4T | 34.0 | 1.14 | +34% |
Lower P/E can signal a discount or weaker growth expectations; PEG adds growth context.
PSO Historical P/E Data (1996–2025)
Quarterly P/E ratios calculated from closing price and TTM EPS
| Quarter | Period End | Price | TTM EPS | P/E Ratio | vs Avg |
|---|---|---|---|---|---|
| FY2025 Q2 | Jun 30 2025 | $14.93 | $1.15 | 13.0x | -27% |
| FY2024 Q4 | - | $16.12 | $1.16 | 13.9x | -22% |
| FY2024 Q2 | Jun 30 2024 | $12.48 | $0.91 | 13.7x | -23% |
| FY2023 Q4 | Dec 31 2023 | $12.29 | $0.85 | 14.5x | -19% |
| FY2023 Q2 | Jun 30 2023 | $10.48 | $0.77 | 13.6x | -23% |
| FY2022 Q4 | Dec 31 2022 | $11.27 | $0.53 | 21.2x | +19% |
| FY2022 Q2 | - | $9.22 | $0.73 | 12.6x | -29% |
| FY2021 Q4 | Dec 31 2021 | $8.40 | $0.63 | 13.4x | -24% |
| FY2021 Q2 | Jun 30 2021 | $11.61 | $0.72 | 16.2x | -9% |
| FY2020 Q4 | - | $9.18 | $0.75 | 12.2x | -31% |
| FY2020 Q2 | - | $7.23 | $0.92 | 7.8x | -56% |
| FY2019 Q4 | - | $8.43 | $1.10 | 7.7x | -57% |
| FY2019 Q2 | Jun 30 2019 | $10.36 | $1.34 | 7.7x | -57% |
| FY2018 Q4 | Dec 31 2018 | $11.94 | $1.26 | 9.5x | -47% |
| FY2015 Q2 | - | $18.96 | $0.50 | 38.1x | +114% |
| FY2014 Q4 | Dec 31 2014 | $18.45 | $0.60 | 30.6x | +72% |
| FY2014 Q2 | Jun 30 2014 | $19.81 | $0.53 | 37.2x | +109% |
| FY2013 Q4 | - | $22.40 | $0.78 | 28.9x | +63% |
| FY2013 Q2 | Jun 30 2013 | $17.91 | $1.61 | 11.1x | -38% |
| FY2012 Q4 | Dec 31 2012 | $19.54 | $2.82 | 6.9x | -61% |
| FY2012 Q2 | Jun 30 2012 | $19.85 | $3.42 | 5.8x | -67% |
| FY2011 Q4 | Dec 31 2011 | $18.87 | $4.02 | 4.7x | -74% |
| FY2011 Q2 | - | $19.01 | $3.09 | 6.2x | -65% |
| FY2010 Q4 | Dec 31 2010 | $15.89 | $2.16 | 7.4x | -59% |
| FY2010 Q2 | Jun 30 2010 | $13.15 | $1.53 | 8.6x | -52% |
| FY2009 Q4 | - | $14.36 | $0.90 | 16.0x | -10% |
| FY2009 Q2 | - | $10.11 | $0.81 | 12.5x | -30% |
| FY2008 Q4 | Dec 31 2008 | $9.54 | $0.72 | 13.3x | -25% |
| FY2008 Q2 | Jun 30 2008 | $12.25 | $0.82 | 14.9x | -16% |
| FY2007 Q4 | Dec 31 2007 | $14.49 | $0.92 | 15.8x | -11% |
| FY2007 Q2 | Jun 30 2007 | $16.84 | $1.13 | 14.9x | -16% |
| FY2006 Q4 | Dec 31 2006 | $15.10 | $1.34 | 11.3x | -37% |
| FY2006 Q2 | Jun 30 2006 | $13.65 | $1.22 | 11.2x | -37% |
| FY2005 Q4 | Dec 31 2005 | $11.87 | $1.10 | 10.8x | -39% |
| FY2005 Q2 | - | $11.88 | $1.47 | 8.1x | -55% |
| FY2004 Q4 | Dec 31 2004 | $12.16 | $0.88 | 13.8x | -22% |
| FY2004 Q2 | Jun 30 2004 | $12.48 | $0.65 | 19.2x | +8% |
| FY2003 Q4 | Dec 31 2003 | $11.21 | $0.42 | 26.7x | +50% |
| FY2001 Q2 | Jun 30 2001 | $17.03 | $0.34 | 50.2x | +183% |
| FY2000 Q4 | Dec 31 2000 | $23.56 | $0.64 | 36.9x | +108% |
| FY2000 Q2 | Jun 30 2000 | $32.00 | $0.87 | 36.8x | +107% |
| FY1999 Q4 | Dec 31 1999 | $33.25 | $1.08 | 30.8x | +73% |
| FY1999 Q2 | Jun 30 1999 | $21.00 | $0.90 | 23.3x | +31% |
| FY1998 Q4 | - | $20.50 | $0.72 | 28.5x | +60% |
| FY1998 Q2 | - | $18.25 | $0.58 | 31.5x | +77% |
| FY1997 Q4 | Dec 31 1997 | $12.75 | $0.44 | 29.0x | +63% |
| FY1997 Q2 | Jun 30 1997 | $11.53 | $0.62 | 18.6x | +5% |
| FY1996 Q4 | - | $13.25 | $0.80 | 16.6x | -7% |
Average P/E for displayed period: 17.8x
Full Stock Analysis
Deep dive into PSO consensus models and risk factors.
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Historical Returns
30+ years return with dividends reinvested.
DCA Calculator
See how regular investing compounds over time.
Peer Comparison
Compare growth, multiples, and margins vs sector.
PSO — Frequently Asked Questions
Quick answers to the most common questions about buying PSO stock.
What is PSO's P/E ratio?
Pearson plc (PSO) trailing twelve-month P/E ratio is 17.8x, based on TTM diluted EPS of $1.18. The 5-year average P/E is 16.5x and the historical range spans 6.9x to 38.1x.
Is PSO stock overvalued or undervalued?
PSO trades at 17.8x P/E, near its 5-year average of 16.5x. The 75th percentile ranking within the 6.9x–38.1x historical range places valuation within normal bounds.
Is PSO stock expensive?
PSO is fairly valued relative to its own history. The current P/E of 17.8x is near the 5-year average of 16.5x (75th percentile of historical range).
What is PSO's historical P/E range?
Over the past 5 years, PSO's P/E ratio has ranged from 6.9x to 38.1x, with a median of 13.6x and an average of 16.5x. The current P/E of 17.8x places the stock at the 75th percentile of this range. Full historical data spans 1996–2025.
How does PSO's P/E compare to the S&P 500?
PSO trades at 17.8x P/E versus the S&P 500 median of 24.4x. The 27% discount to the market suggests lower growth expectations or perceived higher risk.
How does PSO's valuation compare to Communication Services peers?
Pearson plc P/E of 17.8x compares to the Communication Services sector median of 15.3x. The premium reflects expected growth above peers or stronger fundamentals. See the peer comparison table on this page for ticker-by-ticker P/E and PEG.
What is PSO's PEG ratio?
PSO PEG ratio is 1.35, based on a P/E of 17.8x and EPS growth of 18.9%. A PEG between 1 and 2 suggests valuation aligns with growth expectations — typically considered fair.
What is PSO's earnings yield?
PSO earnings yield is 5.63%, the inverse of its 17.8x P/E ratio. Earnings yield represents the percentage of each dollar invested that the company earns. It can be compared directly to bond yields to assess relative attractiveness of stocks versus fixed income.